Financial Performance - Revenue for the period was RMB 1,821 million, representing an increase from RMB 1,439 million in the same period of 2018, a growth of approximately 26.5%[17] - Gross profit for the period reached RMB 1,107 million, up from RMB 762 million in 2018, indicating a growth of about 45.3%[17] - Net profit for the period was RMB 312 million, compared to RMB 217 million in the previous year, reflecting a year-on-year increase of approximately 43.9%[17] - The company reported adjusted net profit of RMB 408 million, significantly higher than RMB 217 million in the prior year[17] - The Group's revenue reached RMB 1,821 million for the six months ended June 30, 2019, an increase of 26.6% compared to RMB 1,439 million for the same period in 2018[47] - The gross profit for the same period was RMB 1,107,112, representing a gross margin of 60.8% compared to 52.9% in 2018[138] - Profit before taxation was RMB 445,564, with an income tax expense of RMB 133,077, resulting in a profit of RMB 312,487 for the period[138] - The total comprehensive income for the period was RMB 312,487, compared to RMB 211,133 in the same period last year[139] Enrollment and Student Statistics - For the six months ended June 30, 2019, the average number of students enrolled was 133,047 across various training programs[12] - New student enrollments increased by 22.9% to 76,208 in the six months ended June 30, 2019, compared to 62,018 in the same period of 2018[31] - The number of new students enrolled in Culinary Arts programs rose by 24.1% to 49,984, up from 40,281 in the previous year[28] - The Information Technology and Internet Technology segment experienced a 26.3% growth in new student enrollments, totaling 15,566[30] - The total long-term course enrollment for the group was 118,454, which is a 9.1% increase from 108,580 in 2018[36] - The average number of students enrolled for the six months ended June 30, 2019, was 133,047, representing an increase of 11.3% compared to 119,502 in 2018[36] Operational Expansion - The total number of schools and centers in operation reached 163 as of June 30, 2019, including 50 schools under New East Culinary Education and 23 schools under Omick Education[16] - The company has expanded its vocational training offerings to include culinary arts, information technology, and auto services, catering to evolving workforce demands[5] - As of June 30, 2019, the company operated 168 vocational education institutions across 29 out of 31 provinces in mainland China and Hong Kong[23] - The company aims to bridge the supply and demand gap in vocational training education, addressing significant unmet demand in the market[23] - The Group plans to establish five self-owned regional centers in major geographical regions of China, including Beijing, Shanghai, Guangzhou, Chengdu, and Xi'an, to enhance its vocational training offerings[77] Financial Position and Assets - Total assets as of June 30, 2019, amounted to RMB 8,922 million, a substantial increase from RMB 2,816 million at the end of 2018[17] - As of June 30, 2019, the total equity of the Group was approximately RMB 5,481 million, a substantial increase from RMB 873 million as of December 31, 2018[68] - The current ratio improved to 2.7 times as of June 30, 2019, up from 0.7 times at the end of 2018, indicating enhanced liquidity[68] - The total of time deposits, bank balances, and cash amounted to approximately RMB 4,796 million, representing 53.8% of total assets, up from 35.0% at the end of 2018[68] Cost and Expenses - The cost of revenue increased from approximately RMB 677 million for the six months ended June 30, 2018, to approximately RMB 714 million for the six months ended June 30, 2019, representing an increase of 5.4%[52] - Selling expenses increased to RMB 319 million for the six months ended June 30, 2019, up from RMB 299 million in the same period of 2018, primarily due to expenses from newly established schools and centers[60] - Administrative expenses rose to RMB 284 million for the six months ended June 30, 2019, compared to RMB 185 million in 2018, representing approximately 15.6% of revenue, up from 12.9% in the previous year[61] Share Issuance and Corporate Governance - The Group issued 435,800,000 new shares at an issue price of HK$11.25 per share, resulting in net proceeds of approximately RMB4,177 million after deducting underwriting commissions and issuing expenses[82] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2019[93][94] - The Company has adopted the Model Code for securities transactions by directors, confirming compliance during the reporting period[132] - The Company acknowledges the importance of good corporate governance practices for the development of the Group[125] Future Plans and Market Strategy - The company aims to enhance employability through innovative vocational training, aligning with China's economic growth and industrial upgrades[5] - The Group aims to diversify its course offerings in culinary arts, information technology, internet technology, and auto services in response to market demand and industry trends[80] - Research is being conducted on potential new industry sectors for vocational training, including beauty, artificial intelligence, and healthcare, to capture future market opportunities[80] Accounting Policies and Compliance - The financial statements for the six months ended 30 June 2019 have been prepared in accordance with Hong Kong Accounting Standards[161] - The Group's accounting policies for the six months ended 30 June 2019 are consistent with those used in the preparation of the financial statements for the three years ended 31 December 2018[161] - The Group's financial statements are prepared in accordance with the new and amended HKFRSs effective from January 1, 2019[167]
中国东方教育(00667) - 2019 - 中期财报